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The Staffing Crisis in Insurance

Paul Carroll, Editor-in-Chief of ITL

We've all heard about the Great Resignation that has accompanied the pandemic, as people have reevaluated their priorities and, in millions of cases, decided that their current job doesn't make the cut. Many have quit and moved to a different company or even to a different industry, and many have stepped out of the work force altogether.

It seems that insurance has it worse than just about any other industry. A study by McKinsey finds that 65% of those who resigned from a job in insurance or finance between April 2020 and April 2022 left the industry entirely. That percentage is exceeded only by the 76% in consumer/retail, which has always had a problem retaining people, and the 72% in government/social sector. And the departures from insurance come as the industry is starting to experience a long-anticipated sort of Great Retirement, as an awful lot of talent is aging out of the work force.

What to do?

New Research

The insurance industry is evolving. While insurers are expanding into new distribution channels, agents and brokers remain the top channel for all segments. Read this latest report from Majesco to better understand why and how insurers must rethink their distribution management operations in a quickly shifting market to secure tenable growth.

Read Now

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I hope the next wave of insurtech players will have more robust insurance fundamentals and will not pretend that insurance ignorance is a competitive advantage.

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by Tom Warden

Inflation, tight labor markets and economic volatility create a perfect storm for chief claims officers. The solution is advanced analytics.

HOW MGAS AND E&S CARRIERS CAN THRIVE

From Agents First to Agents Last?
by Mark Breading

Even though agents are thriving, direct distribution will significantly increase, insurtech will play a big role in reshaping distribution and big tech companies will enter the space.

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Strategies for Smaller Life Insurers
by Alan Lurty

One option is to focus on being nimble -- too many large carriers still must wade through layers of organizational complexity to get anything done.

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Capturing the New SMB Insurance Buyer
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How can insurers make themselves more valuable to SMBs that need them more than ever in a rapidly changing risk environment?

A Guide to Legacy Modernization
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78% of digital transformation efforts fail to drive desired results due to poor planning. Here are some steps that will ensure success.

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Will Web3 Reinvent Insurance?

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When my younger daughter was a freshman at Yale, I was encouraged that her intro to economics class included a fairly long section on the economics of insurance -- essentially, an exercise in determining how much people valued the peace of mind they get from having a policy in place. Insurance certainly never came up in any of the economics classes I took way back when, and I took the material as a good sign: A top-tier college was making insurance intriguing for smart, young students.

Alas, I couldn't interest my daughter in the insurance industry. And there seems to be a lot of that indifference going around, based on the persistent concerns in the industry about the talent gap.